India VPN Crackdown: Blocking Banned Betting Sites
India's government has taken a firm stance against virtual private network (VPN) providers operating within the country, issuing a formal directive that compels these services to actively block access to banned betting and prediction platforms, with Polymarket being specifically named in the order.
The directive originates from the Ministry of Electronics and Information Technology (MeiTY), which has grown increasingly concerned about the widespread use of VPNs as tools for circumventing domestic gambling and prediction market restrictions.
Under the newly enacted Promotion and Regulation of Online Gaming Act, 2025 (PROGA), real-money gaming platforms and prediction markets are expressly prohibited throughout India. Despite this legislation, authorities have noted that a significant number of Indian users are successfully evading these bans by routing their internet traffic through VPN services, effectively masking their location and gaining unrestricted access to otherwise blocked content.
The stakes for non-compliant VPN providers are considerable. According to reports from the Indian Express, the government advisory explicitly warns that failure to take reasonable steps to enforce these restrictions could strip VPN operators of their "safe harbour" protections under Section 79 of the Information Technology Act. This legal provision typically shields technology intermediaries from bearing responsibility for the actions or content generated by their user base — losing it would expose these companies to significant legal liability.
At the center of this controversy is Polymarket, a decentralized prediction market platform where participants trade contracts based on the outcomes of real-world events. The platform has recently attracted global attention after reports emerged that a US special forces soldier reportedly collected $400,000 by correctly predicting the capture of Venezuelan President Nicolás Maduro, raising serious questions about potential insider trading.
Interestingly, Polymarket itself already maintains a policy against circumvention tools, with the platform's website explicitly stating that it "strictly prohibits the use of VPNs or similar tools to bypass geographic restrictions."
The government's advisory highlights a persistent challenge
in enforcing online restrictions within India's digital borders.
Users are reportedly bypassing legal blocks on prohibited betting platforms
by utilizing VPN services to access these websites.
Authorities note that simple ISP-level website blocking is no longer effective,
as these platforms remain easily reachable through a VPN connection.
This situation, officials argue, undermines the purpose of domestic content blacklists.
The directive strongly reiterates that VPN providers and other intermediaries
must undertake reasonable efforts to prevent access to such unlawful platforms,
including 'Polymarket' and similar sites operating in violation of Indian law.
A particular concern raised is the use of financial workarounds,
where users convert Indian rupees into virtual digital assets like stablecoins
to facilitate transactions on these prohibited platforms.
While the regulatory stance is firm, authorities concede to technical complexities.
Enforcing blocks at the VPN level presents significant difficulties,
particularly in distinguishing legitimate privacy traffic from illegitimate use.
This latest move continues a pattern of tension between Indian regulators
and privacy-enhancing tools, following past data retention mandates
that prompted several major VPN providers to remove physical servers from the country.
For the average internet user in India, the advisory underscores
the increasingly uncertain legal landscape surrounding digital privacy tools.
Although VPN use itself remains legal, growing pressure on providers
to monitor and police user traffic may intensify conflicts
between government objectives and global cybersecurity practices.
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